– By Iesh Dixit 

Expected to grow at an AAGR of  more than 6 per cent during 2023 to 2026, the construction industry is a key economic force in India. The sector is largely responsible for accelerating India’s overall growth, and the government is intensely focused on implementing laws and technologies that will enable the timely production of world-class infrastructure in India. The infrastructure sector consists of electricity, bridges, dams, highways, and the development of urban infrastructure. The anatomy of India’s aspirations can be embodied in a gigantic frame. The spine that keeps it upright is the construction industry, as it is one of the largest investment-driven sectors in India.

In the second quarter of 2022, India’s construction sector was valued at over Rs 3,300 trillion. This was a substantial rise from the second quarter of 2020, when the value decreased owing to the COVID-19 pandemic. Construction and manufacturing were among the worst-affected sectors at the time. However, the sector seemed to swiftly recover and return to its pre-crisis level. Infrastructure development has been key to India’s economic growth in recent years. Between FY 2016 and 2020, the industrial sector got the most investment dollars. In the financial year 2020, the manufacturing segment received the highest amount of investments within the infrastructure sector worth USD 23.6 billion. The influx of foreign direct investments into infrastructure sectors has varied over the last five years and has contributed to about USD 7.9 billion in 2021.

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Demarcation of the demand 

In India, the construction sector is made up of both real estate and urban infrastructure development. The growth of other sectors and of India as a whole is largely dependent on the country’s infrastructure. Therefore, the government prioritizes the growth of infrastructure and construction services via policies including – liberal foreign direct investment (FDI) requirements, heavy funding for the infrastructure sector, a smart cities mission, etc.

The infrastructure industry is the second largest employer in India, with 51 million Indians working in this sector. The lofty aspirations of the Indian construction biome will be motivated to boost the business by catering to all the projects and infrastructure requirements and thus grow exponentially in the coming years. The purpose is to reach the podium pedestal and become the third largest construction market globally by 2025. Today, the real estate sector is the second largest employer, the third largest contributor to GDP growth, and the third largest recipient of FDI. 

The challenges that confront the sector 

The number of construction projects that need to be undertaken is overwhelmingly high, but the question is – is the Indian construction industry up to the challenge? What are the impeding factors that hold it back? Construction planning encompasses several facets, including advanced preparation and everyday tasks. Schedulers should be warned if daily work does not coincide with the day’s objective, although this is not often the case. This method results in delays since work priorities are not updated in real time. Ineffective technology, outdated workflow procedures, and reactive management approaches have plagued the construction industry. It was a mirage that the major project could be completed on time and under budget. It is vital to stress that while construction is fundamentally long-term, the sector does not contemplate a long-term vision. This mentality results in low productivity and high costs, which are seen as “typical” structural problems in the construction industry. The productivity of labor can no longer keep up with the productivity of the economy as a whole.

Technology for solutions 

The complexity with which a construction project is managed surpasses that of the vast majority of other industrial endeavors. Construction projects are rife with unforeseen obstacles, needing the highest level of managerial expertise for their effective completion. It has never been simpler to manually monitor and manage all operating divisions at once using traditional techniques. The huge levels of labor breakdown structures on construction projects make communication and coordination not only difficult but also inevitable. Inadvertently, the COVID outbreak stimulated the construction industry’s progression towards the next age. During the shutdowns, a number of tech companies took the chance to introduce their construction management software to the market, which helped the construction industry grow. The prominence of project management softwares in the construction sphere has been very conspicuous. The market size for Construction Management Software is anticipated to reach USD 6520.80 million by 2028, up from USD 2146.2 million in 2021, at a CAGR of 17.0 per cent between 2022 and 2028.

Tailored and trailblazing: A touch of modernity beckons the industry 

It is very important to empower the stakeholders and construction workers through tech solutions for superior management on the worksite. Hence, in response to this issue, some trailblazing companies have taken the onus to solve this deterrent. Some of the leading end-to-end construction management SaaS platforms in the country have fabricated a mobile-first approach for the industry’s site workers, managers, and owners with the palpable power of collaboration on apps designed for simplifying communication and collaboration. These applications track project progress, punctuality, material inventory, and bills; automate reporting; detect issues; and manage finances. 

Construction project management apps are a critical component for the modern construction industry due to real-time information relay between site and office, all-in-one documentation, and being mobile-first gives them an all-embracing advantage. The technology is helping solve a bigger cause—worksite inclusion. Many workers can now use construction project management apps in their mother tongue, which eliminates the language barrier. Even in some cases, community-based privileges in the sector are also being eradicated as the construction management app is driving inclusion dynamically.

Vantage view 

Those with foresight into the future can see that the Indian real estate market is just getting its footing for a long jump. Indian construction companies are surely here for the long haul as 66 per cent of them are looking to prioritize digital transformation. Using technology for transparency, real-time data, and monitoring, a change-order mechanism is built that reduces on-site delays. The outcome would be a reduction in idle time and a very promising method for increasing construction site productivity. These tech-based offerings strengthen the whole construction pyramid—the project owners, project managers, and workers—generating a unified link and subsequent collaboration. The potential for the progression of these solutions is endless.

(Iesh Dixit is the Founder & CEO of Powerplay)